Genesis has quietly launched a guaranteed future value (GFV) program, something it’s been promising since 2020.
Information on the program has been published on the Genesis website, and the configurator now allows you to calculate the price of a vehicle with the three-year GFV financing arrangement included.
“As a new luxury global brand it was important for Genesis to offer customers the added piece of mind Guaranteed Future Value provides, particularly when purchasing their first Genesis vehicle,” said a spokesperson for Genesis Australia.
“Programs like Guaranteed Future Value will help to further establish Genesis brand in Australia.”
CarExpert understands the program is in its infancy and isn’t being actively marketed outside of Genesis’ showrooms.
GFV programs work like a loan with a balloon payment at the end, with Genesis guaranteeing the return value of the vehicle to cover this payment.
These programs typically only guarantee this value at the end of the loan term if the vehicle hasn’t exceeded a set mileage or acquired too much in the way of wear and tear.
They help to allay buyers’ fears about depreciation, a particularly valid concern with vehicles from an upstart brand like Genesis, or indeed fledgling Polestar which also offers such a program.
Once you’ve reached the end of your term, you can either return your Genesis, upgrade to a new one, or buy out the one you have.
Some criticisms of GFV programs have included that buyers may be required to service within a brand’s dealership network, which can be costlier, and that buyers will have less wriggle room for negotiation on any subsequent vehicle.
Neither criticism is especially pertinent for Genesis, given it offers five years of free scheduled servicing and charges fixed prices for its vehicles.
Genesis isn’t the only luxury brand to offer a GFV program, with Jaguar and Lexus among the others.
They’re becoming increasingly common among lower-priced brands too, with Citroen and Peugeot the latest to introduce one.
The introduction of a GFV program could bolster Genesis sales, which have risen more sharply now that the brand finally offers SUVs.
The G80 range will be expanded with the introduction of a new Sport variant in the first quarter of 2022, plus the all-electric Electrified G80; the G70 range has also been expanded with a new Shooting Brake.
What may prove to be more popular in SUV-mad Australia, however, are two new electric SUVs: the Electrified GV70, and the GV60.
These models plus the Electrified G80 will be launched in the first half of 2022.